MONESSEN 277 MONEY MONESSEN, a borough of Pennsyl- vania in Westmoreland county about 40 miles S. of Pittsburgh. It is on the Monongahela river and on the Pennsyl- vania and the Pittsburgh and Lake Erie railroads. It is an important industrial city and contains large steel and tin- plate works. Its other industries include Avire-fence factories, lumber yards and brick works. Pop. (1910) 11,775; (1920) 18,179. MONET, CLAUDE, a French land- scape painter, leader of the Impression- ist School; born in Paris 1840. He drew directly from nature, producing wonder- ful effects of light and air, and endeav- oring to catch the transitory aspect of scenes. For twenty years he labored be- fore his views were accepted, traveling much of the time studying foreign art. His first painting that expressed his ar- tistic methods was "Impression — Rising Sun" (1874). His earlier style is repre- sented by "The Breakfast" in the Liixem- bourg, Paris. "The Orchard," and "Bor- dighera," produced later, show his won- derful handling of light effects. Among the best of his late productions are "Wa- terloo Bridge" (1904); "Palazzo Dario, Venice" (1908); "Rouen Cathedral"; "Water Lilies"; "View of the Thames," all in the Luxembourg Gallery. MONEY, a term used to describe the medium of exchange of standard value of any country. Gold, silver, nickel, copper are the coinage of modem nations, but baser metal coinage, and shells, grains, sheep, wampum, furs, and other commod- ities have been the medium of exchange among primitive people. Money is the measure of value, and buying and sell- ing not only apply relative values to things bought and sold, but to all things that could be sold for money, all credit being dependent on this fact. By standard of value we mean a measure of comparing values at different periods. The measure of values considers the esti- mation of commodities and at the same time the standard of values at different periods; often called the standard of de- ferred payments. Credit organization calls for future money payments, goods being transferred for a promise to pay, and as this may cover a considerable period stability in money value is of first importance. Precious metals as a medi- um were chosen by advanced nations for physical characteristics and also for economic conditions, and because they are durable, portable, and easily divided into parts and are relatively of stable value which rarely fluctuates. Inferior metals have much the same advantages as a medium. With paper, used in greater quantity than metals, the stability of its values is the most important question. All money value is established by the law of supply and demand, or by the costs of production, that is, the law of market value, and of normal value. The values of money are expressed in money as prices, and conversely. To say that prices are high, or low, is to say that money is cheap, or dear. Prices rule high when money is cheap, and low prices prevail when money is dear. We say wheat has gone up in price when it is sold for a dollar a bushel, and was previously 50 cents; but on the other hand the wheat price of money has dropped, because it took two bushels of wheat to obtain a dollar, and then only one bushel. The value of money depends on the quantity in existence, but under normal influences an increase in the quantity lowers its value, while a decrease in the supply raises it. All increase in the world's money supply raises prices caused by loss of value. The purpose of monetary laws is to adjust supply to demand, providing automatic regulation of the amount of money. Free coinage — generally pro- vided for in a metallic currency system — by attracting supplies of metal for that purpose, will to some degree cor- rect and adjust conditions. Between na- tions using the same standard, metal passes back and forth so that there is never either a lack or a redundancy. Abundant money means high prices and then imports exceed exports. Payment of unfavorable balances will cut down the money supply and lower prices. Scarce money brings low prices, and exports surpass imports and the favorable bal- ance brings gold into the country — thus international trade adjusts and corrects local money prices. The value of money depends on supply and demand as with all other commod- ities. Increased demand for money is caused by whatever increases the volume of exchanges, the demand diminishing as the volume diminishes. The demand for money is also determined by rapid monetary circulation, and use of credit, each economizing the use of money. Sav- ings banks quicken the circulation of money by collecting the hoards of poor people and putting the money into cir- culation. Credit is of first importance in influencing money demand, as only balances are paid in money. The coun- try storekeeper who takes farm supplies on an account and pays in goods illus- trates how credit lessens the demand for money. Where there is an abundance of anything the demand increases. A re- duced supply lessens the demand and prevents prices from falling.
